Oil prices shoot to 2019 highs on Iran crackdown

LONDON: World oil prices struck fresh 2019 peaks on Tuesday, boosting energy company share prices, while Wall Street opened higher after a series of better-than-expected corporate results.

Crude futures extended Monday's sharp rally, which was triggered by a US crackdown on Iranian oil exports.

Brent North Sea crude reached $74.70 per barrel Tuesday, the highest point since early November, before falling back slightly.

WTI hit a similar near six-month high at $66.19.

London's benchmark FTSE 100 rose by 0.6 percent on the news.

"UK markets have returned from their long break with solid gains for the FTSE 100, led by strength in oil stocks thanks to the surge in crude prices over the past 24 hours," noted Chris Beauchamp, chief market analyst at IG trading group.

Brent had rallied more than two dollars on Monday and WTI jumped $1.70.

Meanwhile US giants including Twitter, Coca-Cola, Procter & Gamble and Verizon revealed positive earning reports after the Easter break, buoying investor hopes.

However analyst Patrick O'Hare of Briefing.com said traders could still be holding fire ahead of more results.

"The blue chip results are nice to see, yet this market is probably waiting on a stronger directional cue from the response to earnings reports from Facebook and Amazon later in the week," he said.

- $80 oil a 'possibility' -

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The White House on Monday announced it was calling an end to six-month waivers that had exempted countries from unilateral US sanctions for buying Iranian oil.

Starting in May, these countries -- China, India, Turkey, Japan, South Korea, Taiwan, Italy and Greece -- would face sanctions if they continue to buy oil from Iran.

"This points to a big drop in the supply side, which boosts the commodity's price," said Margaret Yang Yan, market analyst at CMC Markets Singapore.

"Iran's daily oil output amounts to 1.3 million barrels, according to latest figures in end-March."

But she added that "the sustainability of oil's rally depends on Saudi and other OPEC members' actions to increase oil supply in the month to come".

Stephen Innes, head of trading and market strategy at SPI Asset Management, said rising crude prices meant $80 per barrel was now a "possibility".

"Oil quickly re-priced higher on fears that markets could face an immediate supply crunch, adding more pressure to the already tenuous global supply squeeze," he added.

Energy and oil-linked shares jumped on Tuesday, with Tokyo-listed crude developer Inpex rallying 2.8 percent and oil refiner JXTG up 1.1 percent.

In London, BP shot up 2.4 percent and Shell 2.3 percent.

European and Asian stock markets were mixed on Tuesday as investors waited on US corporate results.

Separately, Sri Lanka's stock market slumped 3.6 percent as the Colombo Stock Exchange reopened for trading after terror attacks on Easter Sunday killed more than 320 people.

- Key figures around 1340 GMT -

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London - FTSE 100: UP 0.6 percent at 7,505.38 points

Frankfurt - DAX 30: DOWN 0.1 percent at 12,214.98

Paris - CAC 40: FLAT at 5,582.76

EURO STOXX 50: DOWN 0.2 percent at 3,497.07

Tokyo - Nikkei 225: UP 0.2 percent at 22,259.74 (close)

Hong Kong - Hang Seng: FLAT at 29,963.24 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,198.59 (close)

New York - Dow: UP 0.12 percent at 26,543.53

Euro/dollar: DOWN at $1.1211 from $1.1261 at 2050 GMT Monday

Pound/dollar: DOWN at $1.2954 from $1.2981

Dollar/yen: UP at 111.98 from 111.95

Oil - Brent Crude: UP 14 cents at $74.18 per barrel

Oil - West Texas Intermediate: UP 36 cents at $65.92 per barrel